Forex Trading Daily Forecast EUR/USD

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Indicators

TECHNICAL INDICATORS

technical-indicators

Graphs show many things. However, sometimes the graphics are quite incomprehensible. In such situations, technical indicators are of great benefit to investors. They analyze the change in price and transfer it into a format that is much easier to understand.

Technical indicators are based on mathematical equations which calculate new values and place them  on the chart. A typical example of it  is the 'moving average'. In this case equations calculate the average price of a currency pair and book the values down on the chart in the form of a line.

When the price of the specified tool changes, the corresponding value of the indicator changes as well. As you can see as a  whole this indicator smooths the  movements and abrupts sharp changes because following the standard it is based on  for a longer period of time. But still it follows the basic movement of the currency pair.

Read more: TECHNICAL INDICATORS

MOVING AVERAGE – INDICATOR

Moving-Average-indicators

This indicator is considered as the most fundamental of the  trend indicators, especially because it shows  on the one hand the direction of movement of the tool and  on the other the potential levels of support or resistance. Moving average uses  the average price of the currency pair at closing (but can also use the price at opening or closing) and books it down on the graph.

The result is a fairly tight line. You can influence on the  values of the  indicator  as you reset the  frame time which is  used for average price at closing. In short periods moving average is sharper , while longer periods make it smooth. Read more: MOVING AVERAGE – INDICATOR

OSCILLATING INDICATORS

Oscillating-indicators

Oscillating indicators as their name implies, are indicators moving back and forth while the prices of currency pairs rise and fall. Oscillating indicators can help you determine how strong is the current trend of movement of the currency pair and also if this trend is in danger of losing the power of moving and reverse this movement. 

When the Oscillating indicator moves too high, it is assumed that the currency pair is  overbought  (i.e too many people have made their  purchases on the currency pair and there are not enough other buyers on the market to continue to move the  price upwards) .This shows that the currency pair is exposed to the risk of lossing its power of movement up and turning  the movement back. Read more: OSCILLATING INDICATORS

Bollinger bands - Indicator

Bollinger-band

Bollinger band trends is a trend  indicator which shows two things  -  the direction and the volatility of currency pairs. The indicator consists of  two bollinger bands, from the lower and the upper side of a moving average. Bollinger bands are based on standard  on  a 20-bar moving average.

Standard deviation is a statistical term that measures the deviation in the case of different prices at closing in relation to the average price at closing. The upper part is  based on two standard deviations above the 20-period moving average, the lower one is based on  two standard deviations below 20-period moving average. Read more: Bollinger bands - Indicator

COMMODITY CHANNEL INDEX (CCI) – INDICATOR

CCI-indicators

CCI is Oscillating indicator  that can show you how bullish or bearish traders are to the market of a currency pair and estimated strength of these sentiments. By using CCI you can see the volatility of the currency pair, the same way as you see it by using bollinger bands.

How to construct CCI 

CCI is based as on the average value of past price movements as well as on how much longer  these price movements remained away from the average value . Thus  traders receive indication of  how volatile these price movements were . If the average price of a currency pair increases the CCI will also rise. Read more: COMMODITY CHANNEL INDEX (CCI) – INDICATOR

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